Macedonia received a loan for budget financing in 2011 and 2012 from Deutsche Bank, Citibank and World Bank in the amount of EUR 130 million, of which EUR 100 million are guaranteed by the World Bank.

The loan with a basic interest rate of 4.25 percent, a one-time World Bank commission of 0.5 percent and costs for one-time commission to Deutsche Bank and Citibank of 1.3 percent, totaling 4.8 percent, will be paid in one installment on the fifth year after the funds withdrawal.

"This is by far the best financial offer we could receive. The low interest rate and the support we received through the World Bank guarantee has saved Macedonia EUR 25-30 million in interests", said Vice Premier and Finance Minister Zoran Stavreski after Tuesday's signing of the loan and guarantee agreements.

According to him, the funds would help improve the budget's liquidity and the financing of numerous capital projects.

"I expect a small portion of the funds to the used by the year-end, while most will be used in the first few months of 2012. This year we managed to realize 75 percent of capital investments, which is a 20-percent improvement compared to last year", said FinMin Stavreski.

He added that circumstances in the global economy and the capital market are quite complex, and in such conditions, Macedonia wanted to secure funds for budget purposes.

"We have managed to secure the required funds under excellent conditions. I would like to thank the World Bank Office in Skopje and the World Bank management in Washington for offering this opportunity, and instead of US$35 million budgetary support to guarantee our indebtedness with renowned world banks", stressed Stavreski.

World Bank country director Lilia Burunciuc said the guarantee supported reforms that would help the future risks on stability through strengthening the sustainability of public finances and resiliance of the financial sector.

"The policy-based guarantee is given to countries who have achieved success in the field of macroeconomic policies, such as Macedonia. This, along with the management of socio-economic reforms, puts Macedonia in a more favorable position compared to other regional countries", said Burunciuc.

Deutsche Bank/Citibank representative Bob Dobson emphasized that the loan talks were tough, but ended favorably.

"I believe this is the second loan allocated by the World Bank on the grounds of the policy-based guarantee, which is very good for the Republic of Macedonia. I see this loan agreement as a big success for Macedonia, taking into consideration the current market circumstances", underlined Dobson.